A guardianship gives one person the ability to make decisions on another person’s behalf. It typically has to be issued with a court order because this means that the person who is placed in the guardianship loses some of their rights. But when a guardianship is used, the idea is that the guardian will step into this necessary role and put the other person’s – the ward’s – best interests first.
For instance, parents may use a guardianship in their estate plan if they have minor children, as those children will need an adult to make decisions on their behalf until they turn 18, should their parents pass away unexpectedly. Older individuals may also be placed into a guardianship if they are incapacitated due to the effects of aging but still need someone to assist with these crucial decisions at this stage in their life.
Guardianship of the person
One way to set this up is with a guardianship of the person. The guardian will have the ability to make medical decisions and assist with that individual’s daily needs. The only thing they are prohibited from doing is making financial decisions.
Guardianship of the estate
With a guardianship of the estate, however, the arrangement is a bit different. The guardian has the ability to make decisions for the ward’s property, finances and much more. They are essentially handling that person’s assets and estate, rather than their physical or medical needs.
In some cases, a guardianship can be written to address just one of these areas, or the guardian may be given powers in both areas. Either way, it is important for those involved to fully understand all of their legal rights and the necessary steps to take. Having experienced estate planning guidance is key.